Reverse mortgage lender

Forum|Forum|3 years ago
January 30, 2023
2 replies
35 views

do I list a reverse mortgage lender

TurboTax Premier Online

Best answer by Monikak11

Expert Reviewed

It depends. The loan proceeds you receive when taking out a reverse mortgage aren't taxable. You generally don't pay interest on the loan until a specified time, such as when you move out of the house. Unless there was a taxable event or payment of interest in the tax year for which you are filing, you may not need to report anything on the return.

Interest ultimately paid on a reverse mortgage could be deductible subject to limits on home equity.

See here for more information from the IRS on reverse mortgages and here for more information on mortgage interest.

Monikak11Answer

Level 2

Expert Reviewed

Interest ultimately paid on a reverse mortgage could be deductible subject to limits on home equity.

See here for more information from the IRS on reverse mortgages and here for more information on mortgage interest.

Mike9241

Level 15

payment of interest on a reverse mortgage usually is not tax deductible. If you drill into the US tax code, you will learn that IRS treats reverse mortgage proceeds as home equity debt, rather than conventional mortgage debt. While this distinction might sound trivial, it actually has serious implications. You can write off home equity loan interest only on that portion of the debt you used to renovate or make substantial improvements to your home.

you actually have to pay the interest. the usual RM allows the interest to accrue.

Mike9241